SK Broadband will construct a renewable energy-powered hyperscale data center and a startup cluster in the Saemangeum area in Gunsan, North Jeolla Province, according to the company Monday.

SK Broadband planns to develop the Saemangeum area into Northeast Asia’s data center hub, together with SK group’s energy affiliate SK E&S.

“South Korea has optimal conditions to emerge as the region‘s data center hub with its geographical advantage,“ SK Broadband said.

In this 2 trillion won ($1.75 billion) project, the consortium of SK Broadband and SK E&S plan to complete four data center buildings by 2024 and add 12 more data center buildings by 2029.

The company said the data center will be able to get 30 percent of its electricity from renewable energy when it begins its operation. The company added that plans to make the data center run off 100 percent renewable energy in the future.

The power cost for operating the data center is expected to be 30 percent lower than that of Hong Kong and 50 percent lower than that of Tokyo, SK Broadband explained.

In addition, SK Broadband will build a submarine cable system in Saemangeum, which will connect 10 different locations in seven nations in Asia. The company added it is considering options to expand the submarine cable system.

Meanwhile, the consortium will also build a startup cluster on an area measuring 33,000 square meters. The area will be designed to house some 300 startup firms.

SK Broadband consortium will invest some 200 billion won to help the regional economy take off, according to the company.

By Shim Woo-hyun (ws@heraldcorp.com)